LETTER FROM THE EDITORS
In the aftermath of the financial crisis, the U.S. federal
government provided banks with liquidity and incentives to lend
money to borrowers. Interest rates plummeted. Companies took on
more debt to stay afloat. The results have been lasting: companies
are still able to access cheap financing, thereby quelling the tide
of bankruptcy filings, which continues to ebb. While there was
speculation that 2014 might find retail, shipping and
municipalities turning to the bankruptcy courts, for the most part,
filings are at historical lows.
However, bankruptcy professionals aren't sitting on the
sidelines. Pre-petition workouts, out-of-court restructurings and
other alternatives remain popular. When a chapter 11 case is filed,
it's increasingly common to consider a shorter, less expensive
path: an asset sale, allowed under Section 363 of the Bankruptcy
Code, for the benefit of the debtor, the buyer and, occasionally,
creditors.
